Social Tokens A New Way For Influencers To Connect With Fans

This guide will take you through these social tokens and why they are rising and inform you how you can tokenize your brand. Read on to find out the outstanding opportunities social tokens have to offer.

What are Social Tokens?

Social tokens or personal tokens are decentralized and safe blockchains built on a similar blockchain as the typical cryptocurrencies. Social monies are the next generation of social media. We already witnessed the first tokenized communities that emerged in early 2021 become a success. Therefore, social tokens may also be here to stay.

These tokens are developed around an “ownership economy” basis that believes communities will be more valuable in the future than they are now. Influencers can easily earn money when their followers and fans give back something to show their loyalty.

For a while now, content creators, social media influencers, artists, celebrities, models, and leaders have been limited to only a few options to gain income from their hard work. Today, they only use restricted apps such as Spotify, YouTube, or Substack, which often take about 10% – 20% of their income.

Therefore, followers and fans of these influencers have only limited chances to contribute to their creators’ growth. Fans can access private content and vote to determine creators’ work by owning a symbolic part of the creation.

Fortunately, the new social tokens invention is thriving, and influencers can now rest knowing they are not being exploited in any way—this opportunity to monetize also across existing channels.

Alex Masmej is one of the individuals who has used social tokens. This young entrepreneur raised about $20,000 via $ALEX to finance his move to San Francisco and launch a career in cryptos.

Tokenizing Your Brand

Suppose you are interested in the concept of using social tokens, there are various ways to tokenize your brand.

The main methods for brands to use tokens are outlined below.

  • Transacting: users can transfer social tokens to the brand directly as a tip or donation or send them to the influencers.
  • Holding: Other influencers opt to hold on to social tokens as a collectible asset representing their loyalty and support to various brands.
  • Earning: Some brands reward fans or loyal customers with social tokens for either present or future support.

What Makes These Tokens Valuable?

Social tokens are freely transferable hence tend to be listed on exchanges as they have initial success either on decentralized exchanges such as Sushiswap/Uniswap or via social token platforms such as Roll. Consequently, they acquire a fluctuating market price and hence a clearly defined value.

The early members can utilize these markets to “cash out”, and the new prospective members can buy their way in. Low barriers to exit or entry are sensible in the context of the gig economy.

The Catch

Suppose you are a famous creator, influencer, or maybe a Tik-Tok star who amassed 5million followers through short clips of you flipping pancakes. Well, if you want to cash in quickly with a social token, you need to understand that they take some work. One major challenge of social tokens that is often overlooked is that you ought to provide endless benefits.

Today, if you cash in your network with a free newsletter that is ad-supported, you can stop writing the newsletter if you get bored. However, if your fans are buying your tokens, you need to continue providing value or find a somewhat challenging exit strategy.

Joon Ian Wong, a renowned crypto reporter, and researcher, decided to launch the $JOON token as an experiment. It was for the satisfaction of his intellectual curiosity. Eventually, he was intrigued by research that suggested community currencies can jump-start and fuel a local economy like the Brixton Pound in London.

However, Joon soon discovered that it’s loads of work to keep a token going. Also, most of the work is manually done, which is cumbersome. However, Joon remains optimistic about social tokens. He also likes the idea that these social tokens are more than just a gussied-up version of equity. They are a lot more than loyalty points.

Why Social Tokens Matter

Social tokens for many influencers are a way to cash in and make their relationship with fans a two-way street. Influencers can control their interaction with fans, and followers can put a price tag on their devotion. Content creators can identify their most loyal fans and reward them through blockchain. Similarly, token-related feedback can help creators improve their connection and build a community.

Risks of Social Tokens

A token’s value depends on the creator’s ongoing creative content production. Failure to deliver more genuine content can be likened to professional suicide. Anecdotal accounts reveal that influencers may suffer from psychological harm from all the hard work of providing the content.

Financially, the main risk is regulation. Some legal grey areas exist for things like social tokens, varying from concerns regarding false advertising to significant liability issues. The Security and Exchanges Commission (SEC) is working towards defining safe harbor provisions for tokens to clarify and regulate some elements of this space.

In a Nutshell

As more platforms, tools, and partnerships are created, more brands will have the chance to utilize social tokens, whether as a form of exclusive community access or as members-only perks and benefits.

The social tokens space is novel, and it’s rapidly evolving. As an influencer, you may want to consider jumping into this bandwagon, and things may turn out successful. So far, the early experiments have only revealed the surface potential of social tokens which will unfold in the coming decade.

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